Oahu Housing Market Update: Signs of Change in the Condo Market
The latest Oahu housing market statistics for May 2026 reveal two very different stories unfolding across the island. While single-family homes continue to operate in a strong seller's market, the condo market may finally be showing early signs of recovery after years of inventory growth and market challenges.
As local buyers, sellers, and investors continue to navigate changing market conditions, understanding these trends can help you make informed real estate decisions.
Oahu Single-Family Homes Remain in a Strong Seller's Market
Single-family homes continue to be one of the strongest segments of the Oahu real estate market. In May 2026, home sales increased 8.5% year-over-year, rising from 235 sales in May 2025 to 255 sales this year.
Although the median sales price dipped slightly from $1.175 million to $1.166 million, the change represents less than a 1% decline and indicates overall price stability in the market.
Perhaps the strongest indicator of market strength is how quickly homes are selling. Median days on market fell by 38%, dropping from 21 days last year to just 13 days this May.
Inventory levels also continue to shrink. Active single-family home listings decreased by 10.8%, falling from 818 homes available a year ago to just 730 homes today.
For perspective, inventory levels around 800 homes have historically been considered low. Seeing available inventory drop into the 700s is exceptionally rare for Oahu.
Another important metric is months of remaining inventory, which currently sits at only three months. According to the National Association of Realtors, any market with less than six months of inventory is considered a seller's market.
What Price Range Is Selling Best?
Oahu Home Sales by Price Range
The majority of single-family home transactions continue to occur between $1 million and $1.5 million. While luxury properties above $2 million experienced increased activity compared to last year, homes priced above $3 million saw fewer transactions. For most sellers, the $1 million to $1.5 million price point remains the sweet spot in today's market.
Oahu Condo Market Shows Early Signs of Stabilization
The condo market tells a different story. Condo sales declined 9.4% year-over-year, dropping from 374 sales in May 2025 to 339 sales in May 2026.
Despite fewer transactions, condo prices continue to move upward. The median condo sales price increased 4%, rising from $500,000 to $520,000. Condos are also taking slightly longer to sell. Median days on market increased from 39 days to 43 days, representing a 10.3% increase.
However, there is some encouraging news for condo owners.
Condo Inventory Finally Begins to Decline
Active Inventory on Oahu
For the first time in quite a while, active condo inventory (year over year) has started moving in the right direction. Available condo listings fell 6.6% year-over-year, decreasing from 2,556 units to 2,387 units. This inventory reduction may signal that the market is finally absorbing some of the excess supply that accumulated over the past two years.
Many local real estate professionals point to the condo insurance challenges that emerged in early 2024 as a major factor behind the sharp increase in inventory. Since then, inventory levels have climbed significantly, creating a more favorable environment for buyers. Now, the market appears to be entering a period of stabilization.
Still a Buyer's Market - But Improving
Months of remaining inventory for condos fell from 7.1 months to 6.6 months. While this remains technically a buyer's market because inventory exceeds six months, the trend is moving in a positive direction for sellers. If inventory continues declining over the coming months, market conditions could become more balanced.
Which Condos Are Selling?
Oahu Condo Sales by Price Range
Unlike the single-family home market, condo sales are spread across a wider range of price points. Most transactions occur between $200,000 and $1 million, with no single price bracket dominating activity.
Once condo prices exceed $1 million, transaction volume declines considerably. The slowest-moving segment of the condo market remains luxury condos priced above $2 million, where inventory levels remain elevated and buyers have significant negotiating power.
Opportunities for Oahu Buyers
For buyers with available cash or strong financing, today's condo market may present some of the best opportunities seen in years. Higher inventory levels, longer marketing times, and reduced competition in the luxury segment create favorable conditions for negotiation. In particular, luxury condos above $2 million and select properties in the low-$1 million range may offer substantial long-term value as inventory levels continue to normalize.
Looking Ahead
The May 2026 Oahu housing market data reinforces a clear theme: single-family homes remain firmly in seller's market territory, while condos continue to operate as a buyer's market. The difference today is that condo inventory is finally moving in the right direction.
While it's too early to declare a full recovery, the recent decline in inventory and months of supply suggests the market may finally be turning a corner. For homeowners considering selling, investors evaluating opportunities, or buyers searching for the right property, understanding these trends is essential as Oahu's real estate market continues to evolve.
If you'd like to discuss your specific situation or learn more about opportunities in today's market, contact David Buck with Harcourts Island Real Estate at 808-371-3509. Mahalo for reading.